While business is booming for these organizations, threats on the lifeblood of these companies are growing exponentially, too. Establishing payment processing operations and maintaining merchant accounts as a direct selling company can be a challenge and a half. First, there are several considerations that should factor into the type of payment processor you choose:

PCI DSS Compliance – How can you reduce the scope and burden of PCI compliance?

Commissions – How do commission payments factor into your payments operation? Are you able to transfer funds internationally to a representative’s local currency? Do you pay commissions to a prepaid card?

Distributor Payments – Do field representatives use replicated websites for selling and do they need to be connected to a central payments system for payment acceptance?

Once you find the right fit, maintaining a healthy merchant account relationship is essential. Communication is the most important aspect of this relationship. Direct selling companies need to work with processors that understand their business model and its unique needs and challenges. In the same vein, direct selling companies need to be upfront with banking partners on the type of company they run and exactly what they do. If you are a health and wellness direct selling corporation with multiple levels of compensation, you should disclose that early and often. Companies who bypass this disclosure, or even attempt to be dishonest about it, put the entire business at risk. Below are top points that should spur conversation between you and your banking partner.

Sudden and extreme growth – This is not uncommon with direct selling companies; perhaps you’re signing a new distributor that has a 50,000 projected person downline. Tell your processing partner.

New products – This is one of the key criteria upon which processing contracts are underwritten. If you are launching a new product and fail to notify your processing partner, they can terminate your merchant account. Be upfront and honest and open to any feedback they provide.

Sudden and/or unexpected underperformance – Extreme fluctuation can happen in either direction for direct selling companies, and sometimes that direction is downward. If this happens, have an honest conversation with your processing partner about your plans to recover. Solid partners will be consultative with you and provide guidance on getting back on track.

If you’re a health and wellness direct selling company, the outlook is positive. The market for related products and services is bustling with eager buyers and emerging payments technology is making it easier than ever to streamline the unique needs to direct selling organizations. The key is to keep all the above considerations in mind when choosing a processing partner and to focus on maintaining an open, honest relationship with your merchant account provider. Being transparent and collaborative can mean the difference between a healthy processing partner relationship and account termination.

Multi-Level Marketing has gotten a bad wrap over the years. However, when operated properly, it’s a business based on logic. If you can recruit 5 people to sell your business concept for you; if you can encourage these five people, with incentives, to ask five of their friends to sell your business concept, then soon you are going to have a huge number of people working to make your business concept work.

In MLM everyone is a potential lead, everyone is a prospect. Why? Well, everyone can sell. I’m sure this is something you find questionable. Selling isn’t in everyone’s skill set, you say. In some respects, this is true. The act of pure sales is a talent, an art some would say. However, the passing on of recommendations, the suggestion that someone you know might want to get involved and sign up, this is as easy as a share on Facebook. By the time you reach 5 layers of 5 people you have nearly 4000 people all saying how wonderful the business concept can be. If you upped 5 to 7 then after 5 layers you are nearly at 20000 people.

The point of direct selling is to distribute without having the need for a middle man – no shop, no mall, no online shop even. This means the savings made by the manufacturer can be passed on to the MLM personnel, who may or may not pass the savings on to the customer. There are many stories of people who have literally emerged from living wage packet to wage packet and through MLM have gained financial freedom.

The products sold through direct selling are often of better quality than those sold in the supermarkets or at the mall. The quality of the products sold directly, missing out the middle men, have the luxury of products that are highly crafted. This is because the margins are more comfortable. There are less people who need to take a profit out of the product, so the manufacturer can invest more in the development of the items sold.
The incentives offered by creating an effective downline mean that networking is your best approach, both for the overall company and the individual. The more people you recruit the more you earn. Therefore, you often spend more of your time selling yourself, then selling the concept. This is all part of the joy of the system.

It is in the best interest of all to support one another and convert others to the product and the people.
In some respects, on a basic level, there is little difference between MLM direct sales and purchasing a franchise. In both you are expected to communicate the values of the mother company. However, you are a business in your own right and it is in your interest to draw in a profit and to recruit others. For the use of the mother company name and reputation, you pay a commission. This means, throughout time, franchise and MLM has been a common business practice that allows all of us to be an entrepreneur.